Advanced Micro Devices (AMD) stock fell after the company reported its third-quarter results, and its fourth-quarter outlook failed to impress investors. AMD’s decline added to the decline in Nvidia stock as weaker-than-expected guidance raised some concerns about demand for artificial intelligence (AI) chips. Paul Meeks, Harvest Portfolio Management CIO and Wall Street Beats Partner, talks to Morning Brief hosts Seana Smith and Brad Smith about the results and what they mean for the company and the AI space. Ask them to explain in detail.
Meeks said: “A third of my portfolio is in Nvidia. It’s become a rock star. I don’t think what AMD said yesterday is going to put Nvidia at risk, and I don’t think Nvidia is going to make the big moves we’ve already seen.” I think that’s actually a pretty good sign, considering (and) the fact that it’s only down 1% today due to AMD’s sins.
He continued, “(AMD’s) problem is not the pure role of AI accelerator chips. They also have a CPU business, but that business is the worst right now. So from my perspective, even if AMD Even though it’s a strong #2 in the market behind Nvidia and the stock is trading at a discount to Nvidia, I’m just going with that idea and buying more Nvidia on this news. I will continue to avoid it, but this was a good deal for me.”
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This post was written by Naomi Buchanan.
